Geopark (GPRK) and Ocean Rig UDW (ORIG) Critical Contrast

Ocean Rig UDW (NASDAQ: ORIG) and Geopark (NYSE:GPRK) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, risk, valuation, profitability and institutional ownership.

Insider & Institutional Ownership

12.5% of Ocean Rig UDW shares are owned by institutional investors. Comparatively, 14.1% of Geopark shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Ocean Rig UDW and Geopark’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ocean Rig UDW N/A N/A N/A ($40.71) 0.00
Geopark $252.07 million 1.99 $117.31 million ($0.65) -12.88

Geopark has higher revenue and earnings than Ocean Rig UDW. Geopark is trading at a lower price-to-earnings ratio than Ocean Rig UDW, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Ocean Rig UDW has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Geopark has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Ocean Rig UDW and Geopark, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ocean Rig UDW 0 0 0 0 N/A
Geopark 0 0 5 0 3.00

Geopark has a consensus price target of $11.50, suggesting a potential upside of 37.40%. Given Geopark’s higher possible upside, analysts clearly believe Geopark is more favorable than Ocean Rig UDW.

Profitability

This table compares Ocean Rig UDW and Geopark’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ocean Rig UDW -195.64% 16.32% 5.96%
Geopark -15.19% -21.65% -5.11%

Summary

Geopark beats Ocean Rig UDW on 6 of the 9 factors compared between the two stocks.

About Ocean Rig UDW

Ocean Rig UDW Inc is a Cyprus-based offshore drilling contractor that provides oilfield services for oil and gas exploration, development and production drilling, and specializes in the ultra-deepwater and harsh-environment segment of the drilling industry. The Company owns and operates approximately 13 offshore ultra deepwater drilling units, comprising of ultra deepwater semisubmersible drilling rigs and ultra deepwater drill-ships. The Company’s drilling units include Leiv Eiriksson, Ocean Rig Corcovado, Ocean Rig Poseidon, Ocean Rig Mykonos, Ocean Rig Mylos, Ocean Rig Skyros and Ocean Rig Athena. In addition, the Company, through its wholly owned subsidiary, provides supervisory management services including onshore management to its operating drilling units and drilling units under construction.

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